"Federal Reserve Note"

Bloomberg June 10, 2022: The stock market: buckling under the hottest inflation since 1981, battered by a historically aggressive bid to break it. Making matters worse is that bonds are beckoning as well.

And everyone is shocked...  I love watching the U.S. Treasury markets this year.

My reply - really?  Really?  Can you really be that fucking stupid to think that the Federal Reserve induced Everything Bubble was real and permanent.  This bubble came out of Jay Powell's ass just as the Covid-19 virus came from Charlie Chan's Basement Laboratory in Wuhan.

Every shred of historical data was screaming for years that this shit show was coming IF the Federal Reserve kept fucking around with the price of credit.  This whole fucking country runs on poorly planned and poorly underwritten credit and when you start jacking around with the market price of credit or skewing acceptable risk factors just so that you can juice some numbers or influence elections or front run your customers' investments this is the inevitable shit show that you can expect to follow. 

The ONLY reason that the Federal Reserve is back peddling now is for one reason...SAVE THE DOLLAR'S SPECIAL AND MOST PREVALENT RESERVE CURRENCY STATUS.  That's it.  Why?  So they can run the same scam again at some point in the future.  

In the meantime, enjoy $6 per gallon gas and $10 per pound bacon even as your 401k becomes a 201k and your home's "value" slowly reverts to a more historical average price.  And by the way, the pain ain't over at the grocery store just yet.  Farmers across the country are bemoaning the cost increases they will face to put the 2022 / 2023 crop into the ground and harvest.  Where do you suppose those increased costs are going to show up?

What you had better be praying to the good Lord above for is that the country doesn't go "full Argentina" or "full Brazil" 1980's style.  What do I mean by that?  When the unwashed masses make a bee-line for the grocery store or gas station to unload their paychecks denominated in Argentine pesos or Brazilian reals to buy goods because the price of those goods are expected to increase weekly (sometimes daily or even hourly).  It can happen.

Don't believe your old Uncle Kenny?  Well, back in the day I used to date a good looking little Brazilian number from the South of Brazil.  She told me that she could remember grocery stores there announcing price increases over the intercom while people were shopping.  She's not much to look at these days but back in the day she was a cute little thing with a nice rack and she could suck a golf ball through a 10 foot section of garden hose.